Forex Flash: August lull coming to an end – BNZ

FXstreet.com (Barcelona) - Most asset markets have been range-bound this past month and measures of market volatility - like the VIX index - have either held at historically low levels or fallen further. Consistent with this backdrop, the NZD has also been an oasis of calm. The NZDUSD has spent most of August drifting sideways in a narrow 0.8000-0.8250 range - NZDUSD volatility meanwhile, remains around multi-month lows.

According to the BNZ Research Team, "part of this lethargy can be blamed on thinning volumes thanks to the European holiday season. However, there also hasn't been anything to really alter perceptions of global growth. Europe still appears to be muddling through, supported by a renewed intent from politicians to backstop sovereign bond markets."

"While August was a bit of a lull, September has the potential to be much more exciting. Not only is it crammed full of important global and domestic events, but trading volumes should increase as the Europeans saunter back into the office." they note.